Sharp Rise in Service Charges Contrasts with Current Economic Conditions, Says Economist Chisanga
The recent surge in service charges across various government agencies is raising significant concerns among economists and business owners, as the Zambian economy continues to struggle.
Despite the need for policy relief and cost reductions in essential services, increments have been implemented without extensive consultation with key stakeholders.
According to economic analyst Mr. Kelvin Chisanga, the increase in charges for services provided by key government bodies such as the Zambia Revenue Authority (ZRA), Patents and Companies Registration Agency (PACRA), and Road Transport and Safety Agency (RTSA) poses a serious challenge to the country’s economic growth trajectories.
“It is alarming to witness a 33% increase in the cost of doing business,” Mr. Chisanga stated. “This surge will undoubtedly have a detrimental impact on our already struggling economy. The repercussions of these increments will likely derail the progress we have made so far.”
Mr. Chisanga highlighted that the increments in service charges from ZRA, PACRA, RTSA, and other agencies will have strong cascading effects on production and consumption patterns across various sectors.
He said this situation is particularly concerning at a time when economic relief and cost reductions are desperately needed.
“The increase in these charges will create a significant barrier for businesses, particularly small and medium-sized enterprises, which are already operating under challenging conditions,” Mr. Chisanga explained. “It is essential for the government to reconsider these increments and engage in broader consultations with stakeholders to ensure that any changes are in line with the current economic realities.”
The business community is urging the government to implement policies that provide relief and foster economic growth rather than imposing additional financial burdens.
